Market Roundup | 16 November 2015

 FBMKLCI   1656.00pts 
-2.91pts (-0.18%)    Volume 1.917b   Value RM 1.694b

 

The KLCI continued its losing streak for a 4^th consecutive day albeit putting on a resilient performance today after US stocks retreated more than 1% before the weekend. Regions were mostly lower as the HSI -0.72%, HSCEI -1.99%, NIKKEI -1.04%, ASX -0.94%, STI -0.34% while the SHCOMP +0.73% bucked the trend. TECHNOLOGY  -1.33% index continue to lose grounds today amid healthy profit taking amongst, INARI -1.76%, JCY -2.39%, MPI -2.37%, UNISEM -2.10%. Market breadth was negative as losers outpaced gainers by 597 : 347. Market futures closed at 1657 (1pt premium).

 

 

2) Heavyweights : GENM -1.63% RM4.22, PBBANK -0.33% RM17.96, GENTING -1.09% RM7.25, PCHEM -0.76% RM6.50, SKPETRO -1.42% RM2.08, AXIATA -0.32% RM6.08, YTL +2.05% RM1.49, IOICORP +0.72% RM4.17.

 

3) DBT : PWORTH 6.3mil @ RM0.16 (1.20% PUC), SUPERLN 2mil @ RM1.95 (2.5% PUC @ 5.8% discount), PICORP 1.8mil @ RM0.20

 

4) Situational:-

COMFORT +0.62% RM0.81 - Comfort Gloves Bhd is investing RM20.0m to build a three-storey integrated examination glove plant. The project will involve the construction of a new manufacturing facility, packaging and warehousing facility, laboratory facilities as well as auxiliary and ancillary equipment required to manufacture examination gloves. Construction cost is expected to be financed from internally generated funds.

 

 

5) STAR

9mths               Tover RM738.2m        Net -7.5% RM83.3m            EPS 11.31sen

                          8% below RM134m

 

Group revenue in 9M 2015 increased marginally by 0.7% to RM738.25 million from RM732.85 million in 9M 2014. Group profit before tax in 9M 2015 decreased by 9.4% to RM109.73 million due to higher direct costs from Cityneon and lower revenue from Print Segment and I.Star Ideas Factory.

Print and Digital – Revenue decreased by 7.9% mainly due to poor consumer sentiments and overall soft market has caused consumers to be more cautious and held back on the advertising spending as a result of GST, the weakening Ringgit and also the weakening local economy. Profit before tax recorded a slight increase by 2.4% partially due to the impact of Voluntary Separation Scheme (VSS) expenses of RM11.5 million in 1H 2014.

Event, exhibition, interior and thematic – This segment consists of Cityneon and I.Star Ideas Factory (Perfect Livin‟ and Perfect Lifestyle). Revenue increased from RM153.53 million to RM200.80 million mainly due to completion of projects carried out by Cityneon. However, due to lower profit margin and acquisition related cost of Victory Hill Exhibitions Pte Ltd in Cityneon as well as drop in revenue for I.Star Ideas Factory, this segment recorded a loss before tax of RM3.62 million in 9M 2015. Television channel – This segment‟s revenue increased to RM8.73 million from RM7.65 million. As a result of the increase in direct costs and also weakening of the Ringgit, loss before tax has increased to RM5.87 million from RM4.79 million.

Business prospect remain challenging in view of the continued gloomy adex outlook coupled with a challenging economy outlook as a result of the weakening Ringgit however price may continue to be supported given its relatively attractive yield of 6.3%. Hold

 

6) Market – Weaker consume sentiment and lower commodity prices could see investors continue to shy away from particularly EM. Next strong support for the CI seen at 1600pts.